Find the latest episode of "The Uncertain Hour" here. Listen

Apple, China Mobile Strike a Deal

Molly Wood Dec 23, 2013
HTML EMBED:
COPY

Apple, China Mobile Strike a Deal

Molly Wood Dec 23, 2013
HTML EMBED:
COPY

The deal between Apple and China Mobile has been in the works for years, and the number of potential new iPhone buyers is stunning. 

“China Mobile has more subscribers than six Verizons,” said Forrester Research analyst Frank Gillett. “So there’s an awful lot of subscribers that Apple could not access before.”

Gillett notes that the number of people in the market for an iPhone is likely to be far less. First, millions in China already own iPhones. They simply use them through a different carrier. And the field is crowded with competitors like Samsung and Lenovo, companies that make phones which cost a fraction of what the iPhone is expected to. 

Peter Wahlstrom, an analyst with Morningstar says he doesn’t think the comparatively high cost of the phone will deter everyone.

“It’s quite easy for someone to save up and want to show the iPhone as a potential status symbol,” Wahlstrom said. And, he points out, Chinese New Year is a season of giving and receiving presents. It seems reasonable to imagine that at least some of those gifts will be new iPhones. 

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.